Vernoia, Enterline + Brewer, CPA LLC

The U.S. Treasury Department has announced relief for individuals who may have received overpayments of the Code Sec. 36B premium assistance tax credit based on incorrect information from the Health Insurance Marketplace. Affected taxpayers will not need to refund any overpayment, the Treasury Department explained.

Form 1095-A

The Affordable Care Act generally requires individuals to have minimum essential health insurance coverage or make a shared responsibility payment, unless exempt. All individuals who enrolled in minimum essential coverage through the Health Insurance Marketplace for 2014 received Form 1095-A, Health Insurance Marketplace Statement, describing their coverage and the amount, if any, of advance payments of the Code Sec. 36B premium assistance tax credit. Only individuals who obtain health insurance through the Health Insurance Marketplace may claim, if eligible, the Code Sec. 36B premium assistance tax credit.

Incorrect forms

The Code Sec. 36 premium assistance tax credit for the entire year is computed based in part on an individual’s monthly premium for the applicable second lowest cost silver plan (SLCSP). In February, the U.S. Department of Health and Human Services (HHS) reported that it had issued some 800,000 incorrect Forms 1095-A. The incorrect forms referenced Marketplace benchmark plans for 2015 rather than 2014. The incorrect forms accounted for approximately 20 percent of taxpayers who received insurance through the Health Insurance Marketplace, according to HHS. The Marketplace has been contacting affected individuals, who will receive corrected Forms 1095-A.


If the taxpayer has already filed a return for 2014 and received a higher Code Sec. 36B premium assistance tax credit as a result of the error, the taxpayer may keep it, the Treasury Department explained. The IRS will not pursue collection action against that taxpayer. If, due to the error, a taxpayer who has already filed a 2014 return received a lower credit than he or she was entitled to receive, the individual may amend the tax return, the Treasury Department added.

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